We recommend staying at the Grand Hotel in Sunnyvale, CA: http://www.svgrandhotel.com
It is only a few minutes walk away from our house - what a great way to enjoy the California weather! Go here to look at their video introduction. They have all suites, swimming pool, free WiFi, free happy hour drinks, free pickup/drop off from/to San Jose airport and many other great facilities.
We have just negotiated a group rate of $99/standard room/per night for all our wedding guests who wish to stay at the hotel. Suites will be offered at the rate of $109/night. The group block number is B0DQ10 under the name Ganapathy or van Rietschote.
Another good hotel (and a little cheaper) is the Sunnyvale Maple Tree Inn http://www.mapletreeinn.com/ they have complimentary breakfast. It is about 2.2 miles from our house (8 minutes by car). It is within walking distance from where the wedding and reception will be held.
Find Maple Tree Inn on the map
You can also go to http://www.hotels.com to find a hotel. We live in Sunnyvale, CA so find something close by. One of our guests found a good deal on http://www.expedia.com
For renting a vacation home (in case you go travelling in the US) a good place to find one is Vacation Rental By Owner http://www.vrbo.com/